What is the future value of $121,307 invested today in an account that earns a 7.5% annual rate in 40 years?
A)$1,456,876
B)$457,987
C)$2,188,893
D)$1,545,420

Question

Quizplus · Accepted Answer

Using the formula for future value of an investment:
FV = PV x (1 + r)^n 
where PV is the present value, r is the annual interest rate, and n is the number of years. Plugging in the given values:
FV = $121,307 x (1 + 0.075)^40 
FV = $2,188,893
Therefore, the correct answer is C.

What Is the Future Value of $121,307 Invested Today in an Account